Common use of Use of Loans Clause in Contracts

Use of Loans. Subject to the terms and conditions elsewhere herein, the proceeds of the Loans shall be used (a) to pay fees and payables, (b) to provide additional drilling capital and (c) for general working capital purposes; provided, however, the proceeds of the Loans shall not be used to pay any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used by the Borrower to: (a) to pay fees and payables, expenses incurred in connection with the transactions contemplated hereby; (b) to provide additional for drilling and development projects and other working capital expenditures and general corporate purpose needs of the Borrower, including the issuance of standby letters of credit; and (c) for general working capital purposes; providedpurchase Oil and Gas Properties permitted by, howeverand subject to, the proceeds terms of this Agreement. Neither the Loans shall not be used to pay Borrower nor any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower Subsidiary is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used (ai) to pay fees and payablesrefinance the Prior Debt, (bii) for the development of the Obligors' Pipeline Properties and the acquisition of Pipeline Properties and related assets by the Obligors, (iii) for Obligors' working capital, (iv) for Letters of Credit to provide additional drilling capital support the obligations of the Obligors, and (cv) for general working capital company purposes; provided, however, . Neither the proceeds of the Loans shall not be used to pay Borrower nor any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower other Obligor is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used to finance (ato the extent not covered by the net proceeds from the initial public offering of Borrower's common stock referred to in Section 6.01(j) to pay fees and payablesabove), (b) in part, Borrower's acquisition of the Founding Companies, to provide additional drilling capital and (c) for general working capital purposes; providedcapital, however, the proceeds to repay certain outstanding indebtedness of the Loans shall not be used to pay any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used Founding Companies and to finance in whole or in part any hostile acquisitionfuture acquisitions to the extent permitted under Section 9.03(i) hereof. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation G, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used by the Borrower to: (a) fund the purchase of the Acquired Assets pursuant to pay the Acquisition Agreement, the repayment of existing debt and fees and payables, expenses incident to the preceding. (b) to provide additional drilling for the working capital and (c) for general working capital purposes; provided, however, the proceeds corporate purpose needs of the Loans shall not be used to pay Borrower and its Active Subsidiaries. Neither the Borrower, any Guarantor, nor any of the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower Borrower’s Subsidiaries is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used for (ai) the acquisition of Oil and Gas Properties, (ii) exploration and development of Oil and Gas Properties, (iii) working capital, (iv) to pay fees and payablesrefinance Debt under the Prior Credit Agreement, (bv) to provide additional drilling capital repurchase, redeem or repay Existing Other Debt or Subordinated Debt to the extent otherwise permitted under this Agreement and (cvi) for general working capital corporate purposes; provided, however, the proceeds . None of the Loans shall not be used to pay any of Guarantors or the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.

Use of Loans. Subject to the terms and conditions elsewhere herein, the The proceeds of the Loans shall be used for (ai) the acquisition of Oil and Gas Properties, (ii) exploration and development of Oil and Gas Properties, (iii) working capital, (iv) to pay fees and payablesrepay or retire Debt under the Prior Credit Agreement, (bv) to provide additional drilling capital repurchase, redeem or repay Existing Other Debt or Subordinated Debt to the extent otherwise permitted under this Agreement and (cvi) for general working capital corporate purposes; provided, however, the proceeds . None of the Loans shall not be used to pay any of Guarantors or the Senior Indebtedness. In no event shall the proceeds of the Loans be used to finance in whole or in part any hostile acquisition. The Borrower is not engaged principally, or as one of its important activities, in the business of extending credit for the purpose, whether immediate, incidental or ultimate, of buying or carrying margin stock (within the meaning of Regulation T, U or X of the Board of Governors of the Federal Reserve System) and no part of the proceeds of any Loan hereunder will be used to buy or carry any margin stock.